Nordstrom reports bigger-than-expected loss, sales fall, Retail News, ET Retail

Nordstrom Inc reported a more substantial-than-expected decline and a 53% tumble in revenue on Tuesday, as its merchants were being shut for about fifty percent of the reported quarter because of to the COVID-19 pandemic.

Shares of the upscale section retail outlet chain were being buying and selling down just about seven% immediately after the bell.

“We’re assured that we can enhance revenue tendencies in the 2nd fifty percent of the year and over and above,” said Pete Nordstrom, president and main brand officer of Nordstrom.

“Our inventories are present-day and in-line, and we’re targeted on amplifying pertinent categories, manufacturers and tendencies to meet customers’ transforming preferences.”

Like several of its friends, Nordstrom suffered greatly from a pandemic-induced monthslong closure of its merchants across the United States, bringing foot traffic to a standstill. As consumers stayed home to suppress the distribute of the virus, they opted to devote their dollars on cozy clothing fairly than upscale apparel and formal do the job attire.

J.C. Penney, Neiman Marcus, Brooks Brothers and other shops have filed for individual bankruptcy safety in the very last many months.

Nordstrom’s bottom line also took a hit immediately after the retailer moved its popular Anniversary Sale from the 2nd to the third quarter. The move impacted its on the web revenue, which fell 5%.

The Seattle-based corporation posted web revenue of $1.seventy eight billion for the 2nd quarter ended Aug. 1, compared with $3.seventy eight billion, a year before.

Nordstrom reported a web decline of $255 million, or $1.sixty two per share, compared with a earnings of $141 million, or 90 cents per share, a year before.

Analysts were being anticipating a decline of $1.forty eight per share, according to IBES details from Refinitiv.

Whole income fell fifty two% to $1.86 billion, missing Wall Road estimates of $two.38 billion.